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Related Flashcards
Related Topics
Cards In This Set
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The Invisible Hand
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Term used to describe the self regulating nature of the marketplace
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Product Market
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Where goods and services are bought and sold
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Factor Market
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Where resources, especially capital and labor, are bought and sold
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Household/Resource Owner
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A person or group of people who share income
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Gross Domestic Product (GDP)
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The total value of all final goods and services produced in the economy during a given year
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Intermediate Goods and Services
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Goods and services bought from one firm by another firm to be used as inputs into the production of final goods and services
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Final Goods and Services
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Goods and services sold to the final, or end, user
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Multiple Counting
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When the value of something is counted multiple times in the GDP calculation
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Expenditure Approach (C+Ig+G+Xn)
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All expenditure incurred by individuals during one year
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Income Approach (R+W+i%+P)
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Sum total of individuals living in a country during one year
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Personal Consumption Expenditures
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Essentially a measure of goods and services targeted towards individuals and consumed by individuals
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Gross Private Domestic Investment
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Expenditures on capital goods to be used for productive activities in the domestic economy that are undertaken by the business sector during a given time period.
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Net Private Investment
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A measurement of an individuals investment on capital, found by subtracting "non cash depreciation" from "capital expenditures"
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Government Purchases
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Total expenditures on goods and services by federal, state, and local governments
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Net Exports
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Difference between the value of exports and the value of imports
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